The Swedish Riksbank lowered its key policy rate by 25bps to 3.5% in its August 2024 meeting, in line with the market consensus, and signaled that two or three additional rate cuts this year should inflation develop in line with the central bank’s outlook. It was the second rate cut of the cycle, easing further from the 4% interest rate first reached in September 2023. The Riksbank noted that inflation continued to fall in recent months, with key gauges converging quickly to the 2% target, giving the central bank more certainty that the disinflation forecasted in the June policy report assesses the economic backdrop correctly. Additionally, policymakers noted that Sweden’s growth outlook may be weaker than expected earlier this year. Consequently, the Executive Board noted that it is appropriate to reduce borrowing costs faster than what was assessed in June, adding that the new base case is for two to three cuts in the central bank’s three remaining decisions this year. source: Sveriges Riksbank
The benchmark interest rate in Sweden was last recorded at 3.50 percent. Interest Rate in Sweden averaged 2.81 percent from 1994 until 2024, reaching an all time high of 8.91 percent in July of 1995 and a record low of -0.50 percent in February of 2016. This page provides the latest reported value for - Sweden Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Sweden Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on September of 2024.
The benchmark interest rate in Sweden was last recorded at 3.50 percent. Interest Rate in Sweden is expected to be 3.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Sweden Interest Rate is projected to trend around 2.50 percent in 2025 and 2.00 percent in 2026, according to our econometric models.
Sweden Interest Rate
In Sweden, benchmark interest rate is set by the Executive Board of the Central Bank of Sweden (The Riksbank). The main interest rate is the repo rate which is the rate of interest at which banks can borrow or deposit funds at the Riksbank for a period of seven days. The Riksbank's target is to hold inflation in terms of the CPIF (the CPI with a fixed interest rate) around 2 percent a year.
| Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | ||
|---|---|---|---|---|---|---|---|---|
| 3.50 | 3.75 | 8.91 | -0.50 | 1994 - 2024 | percent | Daily |
News Stream
Swedish Riksbank Cuts Rate by 25bps
The Swedish Riksbank lowered its key policy rate by 25bps to 3.5% in its August 2024 meeting, in line with the market consensus, and signaled that two or three additional rate cuts this year should inflation develop in line with the central bank’s outlook. It was the second rate cut of the cycle, easing further from the 4% interest rate first reached in September 2023. The Riksbank noted that inflation continued to fall in recent months, with key gauges converging quickly to the 2% target, giving the central bank more certainty that the disinflation forecasted in the June policy report assesses the economic backdrop correctly. Additionally, policymakers noted that Sweden’s growth outlook may be weaker than expected earlier this year. Consequently, the Executive Board noted that it is appropriate to reduce borrowing costs faster than what was assessed in June, adding that the new base case is for two to three cuts in the central bank’s three remaining decisions this year.
2024-08-20
Riksbank Leaves Rate Steady
The Riksbank maintained its key policy rate at 3.75% on June 27, 2024, in line with market expectations saying that inflation is nearing the 2% target, and long-term inflation expectations remain stable, with moderate wage increases. While inflation, excluding energy prices, has fallen to 3%, recent outcomes were slightly higher than expected, suggesting cautious rate cuts are necessary. Policymakers added that if inflation prospects remain the same, the policy rate can be cut two or three times during the second half of the year.
2024-06-27
Riksbank Lowers Interest Rate to 3.75%
The Riksbank lowered its key policy rate by 25bps to 3.75% on May 8th 2024, in line with market expectations, saying inflation is approaching the target while economic activity is weak. It is the first reduction in borrowing costs since 2016, following the tightening campaign that started two years ago. Policymakers added that if the outlook for inflation still holds, the policy rate is expected to be cut two more times during the second half of the year. However, the outlook for inflation is uncertain and risks that may cause inflation in Sweden to rise again are primarily linked to the strong US economy, the geopolitical tension and the krona exchange rate. The adjustment of monetary policy going forward should therefore be characterised by caution, with gradual cuts to the policy rate.
2024-05-08
